Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income. Explain the consequences of this error on the current period's income statement.
A. Cost of goods sold will be too high by $5,000.
B. Cost of goods sold will be too low by $5,000.
C. The correct net income amount should have been $105,000.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income. Explain ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
In a limited partnership, who is automatically authorized to borrow money
Answers (2)
When being interviewed during the gathering of job analysis data, which type of individual may provide exaggerated information about a job's complexity or importance?
Answers (1)
Economists usually call an industry an oligopoly if A. there is one firm that produces 100 percent of the output B. the ten largest firms produce less than 50 percent of the output C. only one product is available on the market D.
Answers (1)
D. what is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)
Answers (1)
On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account. What entry should be made on the November 1 to record the note acceptance? A - Debit Note Receivable $10,000; credit Cash $10,000.
Answers (1)
New Questions in Business
Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $130,000 7-years from now. How much must Carol deposit to accomplish her goal?
Answers (1)
At the end of 2016, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts of $23,140. On January 24, 2017, it is learned that the company's receivable from Madonna Inc.
Answers (1)
United Birdseed is expected to pay the following dividends over the next three years: After year 3, dividends are expected to grow by 5% per year forever. The expected/required return on United Birdseed stock is 10%. What is the stock price?
Answers (1)
Halestorm Corporation's common stock has a beta of 1.13. Assume the risk-free rate is 4.8 percent and the expected return on the market is 12.3 percent. What is the company's cost of equity capita?
Answers (1)
A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level. a. true b. false
Answers (1)